CSX, NRG updates 12/7

CSX: I showed this ticker’s big-picture recently (see here) but wanted to show some more detail today. Namely, since it’s low made in August (labeled as minute-iv in the big picture) it has been impulsing higher as you can see. Price has likely now completed a small 4th wave right at the 100% extension of the prior larger-degree (micro-1 in this case) red 1st wave, counted off the red wave-ii. Although a drop to the green 38.2% retrace at $55.74 cannot yet be excluded, often the rally to the 138.2% for wave 3 of iii is then retraced back to the 100% extension for 4 of iii and 5 of iii should now be underway to ideally the 161.8% extension at $59.85.  Once that’s reached we can re-assess the next wave down.

CSX

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NRG: Late November (See here) I was looking for a wave iv to bottom and v to take hold. Unfortunately i was a bit early as price was trading then at the high $28s (20d SMA) and instead continued to drop to the low $27s today. More detailed analyses shows that price failed the 76.4% retrace, which I was looking for next, and now has held the 61.8% retrace as well as the 50d SMA. Big call buying is coming in, so we should expect higher prices. If so, then I expect minute-v to reach the 161.8% extension at $31.15 assuming a v=i relationship. There’s now positive divergence on the daily RSI5 and the A.I. will give a buy signal tomorrow when we have another up day. A break below the minute-i high at $26.54 means my view is wrong. One can use that as a stop loss.

NRG